| Daily News - Friday, 22 February 2008 |
President Leonel Fernandez has sent Central Bank director Hector Valdez Albizu to Washington for meetings with IMF executives. On the agenda is the possibility of signing a new agreement with the international financial institution. Officials who have championed a new pact say that the new agreement doesn't necessarily have to be a Stand-by arrangement like the last one, and even if a Stand-by agreement were to be signed, it could be a less stringent accord. Fernandez, quoted in Diario Libre, said that with the continued deterioration of the world economy, the DR could protect itself from any adverse effects, enabling the country to continue with the stability it has experienced in recent years.
The Transport Reorganization Office (OPRET) took the Santo Domingo metro on its first trial run yesterday. The train made a 2km trip from Isabela station, near the old cement factory to Los Cerros de Buena Vista. Hoy reports that the sight of the metro cars moving were met with cheers and exclamations from onlookers, while OPRET's Diandino Pena and Rafael Serrano waved to passers-by as the train traveled the elevated railway above Villa Mella. The maiden voyage caused a commotion as drivers stopped their vehicles to watch the train while others took pictures of the somewhat historic moment. The question now is when, and on which train, will President Leonel Fernandez ride on 27 February? Fernandez originally pledged that the Santo Domingo Metro would be inaugurated on that date, but constant delays have plagued the project and it is no longer expected to be ready by then.
Listin Diario is reporting that negotiations for a free trade agreement between the Dominican Republic and Canada have been indefinitely suspended and sources have no idea when talks are likely to resume. The negotiations were entering their second round of a total of five scheduled. Last December the first rounds were held in Ottawa, and the second round was to be held between Monday and Wednesday of this week. Eduardo Tejera, former Dominican ambassador to Canada now assigned to the Foreign Ministry, expressed his disappointment about the suspended negotiations and explained that there was some confusion on the part of the Dominican industrial sector. The areas of confusion were enough cause for the Dominican Foreign Ministry to suspend the negotiations unilaterally. Tejera explained that the industrial sector's stance reflected misinformation, based on a perception that the recently signed European Partnership Agreement with Caricom and the European Union would affect negotiations with Canada.
The Central Electoral Board (JCE) has announced that the fake marriages that were performed in Punta Cana, Bavaro and Higuey would be legalized. This statement was made by Administrative Chamber President Roberto Rosario and JCE head Julio Cesar Castanos Guzman. Rosario said that around 200 marriages were performed by unqualified personnel who had pocketed the fees, but the JCE will legalize the corresponding certificates and send them to the affected couples. Speaking in the Diario Libre, Rosario said that these couples had been duped and victimized through no fault of their own. He added that the JCE is working together with the Tourism Ministry to fix the problem.
The central government has promised to give the Central Electoral Board (JCE) an additional RD$461 million for use in staging the 2008 presidential elections. The additional funds bring the JCE's total electoral budget to RD$1.5 billion for 2008. JCE president Julio Cesar Castanos Guzman explained that the JCE was also given a one-year extension to pay back an RD$386 million loan to the Banco de Reservas. Castanos, quoted in Hoy, stated that the JCE's money problems have disappeared thanks to these new funds and the loan payment extensions. The JCE president said that of the RD$461 million in funds, RD$230 million will be used to implement a results transmission program, RD$87 million will be designated to voting systems abroad, RD$92 million in per diems for military personnel who will work during the elections and RD$52 million for the people who will staff the voting stations. Late last year, during budget allocation time, the JCE had asked for a budget of RD$7.8 billion, but were only given a budget of RD$3.5 billion, including the RD$1.06 billion that is allocated to the political parties.
According to figures provided by engineer Bernardo Castellanos, during the last four years the budget for the energy sector in the DR reached US$2 billion (RD$65 billion). Castellanos spoke of the "paradox" where the use of petroleum-generated electricity production plants has decreased, yet the subsidy for these types of generators has increased over the years. Castellanos's assertions prove that the increase in the subsidies to the energy sector aren't related to the increase in world petroleum prices, but the result of increasing inefficiency on the part of the power distribution companies. The distributors have been unable to make significant reductions in corporate losses and have failed to fulfill commitments made with the IMF or the World Bank. According to Castellanos, between 2000 and 2002 electricity generation using petroleum was at 90%, but since then there has been an increase in investment in energy production plants that don't use petroleum. Between 2000-2004 the government spent an estimated US$200 million on the construction of hydro-electrical generators and the energy production of these plants went from 125 MW in 2000 to 470 MW in 2004. There has also been an increase in the use of coal and gas powered electricity production, adding an extra 869 MW to the energy total. Castellanos said that non-petroleum based electricity production equaled 51.3% of the total between 2005-2007, compared to only 10% between 2000-2002. According to the World Bank, the energy sector's losses equaled 39% in 2004.
Yesterday's 24-hour strike by doctors went ahead without a hitch. Although some doctors did minimal work, Hoy reports that the strike went on as planned throughout the country. The strike appears to have accomplished its goals, as Public Health Minister Bautista Rojas Gomez urged doctors to get back to the table and reopen dialogue with officials. The minister said that with the goal of continued communication with doctors, a special follow-up committee will continue working. The importance of doctors' work was highlighted when dozens of families, some having traveled long distances, arrived at hospitals in Santo Domingo but had to return home without getting much needed medical treatment. Some people complained that they had to get loans in order to make the trip to Santo Domingo. Dominican Medical Association (CMD) president Waldo Ariel Suero said that the strike had been a success across the DR. Suero made a veiled threat, saying that a one-week strike was still a possibility and added that the transport unions could even join doctors in their strikes. Suero also said that the fight for the wage increase would intensify. Doctors have been pressing for more benefits including an increase of their monthly salary to RD$59,000. Although Rojas seems willing to negotiate, Hacienda Minister Vicente Bengoa, quoted in Diario Libre, stressed that the government doesn't have the money to pay doctors since it was not included in the 2008 budget. However, observers noted that Bengoa's assertions were made the same time as the announcement that the Central Electoral Board was being awarded an extra RD$461 million to stage the 2008 presidential elections.
The Tax Department (DGII) will refunding taxes paid by exporting companies as part of Law 392-07 on Competitiveness and Industrial Innovation. The refunds will include taxes on checks, fuels, selective insurance, telecommunications and the payment of the ITBIS (VAT) tax on the purchase of machines. The measure is included in DGII's General Regulation 02-08 and is part of an overall drive to help Dominican companies to operate in foreign markets. In order to get the refunds, export companies or individuals must be certified by the Center for Development and Industrial Competitiveness (Proindustria). Proindustria president Ruben Bichara is calling for all industrialists to get their documents in order and submit them to get the certification that makes them eligible for refunds. DGII has said that they will not refund anyone who is not certified by Proindustria.
The Integrated Research and Guidance Center (COIN) reports that the practice of human trafficking is most prevalent in Boca Chica, Villas Agricolas, Yaguate and San Cristobal. According to COIN, these areas, especially the ones closest to resorts and tourist areas, are most vulnerable. COIN's report was prepared with the help of the International Organization for Adolescents (IOFA) in conjunction with local community organizations. According to COIN projects manager Francisca Ferreira, young people are often offered marriage or simply given the chance to travel to abroad for work opportunities and are then forced into prostitution. According to Listin Diario, 51% of interviewees acknowledged that they knew someone who had been used in this way. A large number of victims are sexually exploited, used as domestic workers, forced into marriage or made to engage in illicit activities. According to COIN, human trafficking is the fourth most profitable illegal business in the world.
President of the Dominican Telecommunications Institute (Indotel) Jose Rafael Vargas says that television density in the DR has now reached 70%, which is "something you cannot say about that many countries." This means that 70% of households have a television. Vargas added that the DR is one the developing countries with the most advanced telecommunications infrastructure.
New York based bachata band Aventura continue to go from strength to strength, this time snagging four awards at the 20th Annual 'Premios Lo Nuestro' celebration in Miami. The Dominican-American group, led by Anthony R. Santos, was nominated in five categories. Juan Luis Guerra continued his amazingly successful year by picking up two awards, adding to his raft of Latin Grammy and Grammy awards.
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved.